Monday, 20 May 2013

1pm update - hilarity in the metals

The precious metals saw rather sharp declines overnight, but we've seen some extremely powerful reversals this lunch hour, with Gold +$40 at one point. Silver has similarly reversed. Main indexes remain strong, ahead of Tuesdays next mid-sized dose of POMO.


GLD, daily


The bulls got rattled..and exited..and now the gold bears got rattled..and short-stopped out. On the 1min chart, its pure hilarity as everyone is getting whipsawed all over.

On the bigger daily charts, it does look like we have a double bottom on Gold, and a marginally lower low on Silver. Underlying MACD cycle is divergent, and suggestive of reasonable least in the short term.

I am still hyper-bearish in the mid-term for metals

*I am seriously considering an SLV (long) for a mult-day trade, but not until the next 15min down cycle has played out. That looks likely to take until early there is NO hurry for today on that.